I'm watching TVLY premarket on Tuesday; it's moving up, so I check the news before I decide to jump on the bandwagon. It's being acquired by another company that already owns a lot of the shares. The price is $23 cash; it's not a stock-for-stock deal. The stock goes all the way up to $25 and change. I guess some analyst came out and said it was worth more. (according to CNBC; I couldn't find any such comment) I managed to make a little on this, but I hesitated because I thought there was no way it could trade over $23. Does anyone know why a stock being purchased for cash would trade over the purchase price? Is it because there is the possibility that the acquirer might be outbid? If so, why would traders automatically jump to the conclusion that someone would outbid them?